LNG

Western Canada’s natural gas industry is the subject of a revival effort after a surprise offering of tax breaks to liquefied natural gas projects by the provincial government of British Columbia in a last-ditch effort to save the LNG Canada project proposed by Royal Dutch Shell and its Asian partners.

Oct 21 (LNG) - Royal Dutch Shell, whose LNG Canada export project in British Columbia is currently on hold, has agreed to sell around 206,000 net acres of non-core oil and gas properties in Western Canada to Tourmaline Oil Corp. for US$1.03 billion. The transaction is comprised of US$758M in cash and Tourmaline shares valued at US$279M. The acreage includes 61,000 net acres in the Gundy area of Northeast British Columbia and 145,000 net acres in the Deep Basin area of West Central in the province of Alberta. “Shell retains a significant shale position in Canada and we are actively working to mature our attractive core asset base in the Montney and Duvernay,” said Andy Brown, Shell Upstream Director.